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Emerging Issues in Economic Diplomacy

The nine issue papers contained in this report were proposed and written by graduate students at the Belfer Center for Science and International Affairs at Harvard Kennedy School. They present fact-based, nonpartisan analysis to help focus the next Administration on the key policy debates that must be resolved. And, they aim to create a platform for our students to engage with the most pressing policy issues of the day as they continue their careers in public service.




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The United States Can Still Win the Coronavirus Pandemic

The Trump administration has made one mistake after another—and, with some foreign-policy changes, could emerge with more global power anyway. Stephen Walt details those recommended foreign policy changes.




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The Twin Crises and the Prospects for Political Sectarianism in Lebanon

LCPS solicited the opinion of key experts to answer one question: “Will the financial crisis, exacerbated further by COVID-19, strengthen or loosen the power of Lebanon’s governing political parties?” 




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Harvard Business School Professor Rebecca Henderson Outlines Ways Organizations are Changing in Response to the Coronavirus Pandemic and Climate Change in New Edition of "Environmental Insights"

Rebecca Henderson, the John and Natty McArthur University Professor at Harvard University, shared her perspectives on how large organizations are changing in response to the coronavirus pandemic and climate change in the newest episode of "Environmental Insights: Discussions on Policy and Practice from the Harvard Environmental Economics Program," a podcast produced by the Harvard Environmental Economics Program. Listen to the interview here. Listen to the interview here.




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Organizational Responses to COVID-19 and Climate Change: A Conversation with Rebecca Henderson

Rebecca Henderson, the John and Natty McArthur University Professor at Harvard University, shared her perspectives on how large organizations are changing in response to the coronavirus pandemic and climate change in the newest episode of “Environmental Insights: Discussions on Policy and Practice from the Harvard Environmental Economics Program.”




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Oil's Collapse Is a Geopolitical Reset In Disguise

The world is on the cusp of a geopolitical reset. The global pandemic could well undermine international institutions, reinforce nationalism and spur de-globalization. But far-sighted leadership could also rekindle cooperation, glimmers of which appeared in the G-20’s offer of debt relief for some of the world’s poorest countries, a joint plea from more than 200 former national leaders for a more coordinated pandemic response and an unprecedented multinational pact to arrest the crash in oil markets.  




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Romney's Reckless China Rhetoric Risks New Cold War

Rachel Esplin Odell argues for a wiser and more conservative strategy that resists the temptation to exaggerate the challenge posed by China.




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History Warns Us to Avoid a W-shaped Recession

“Those who do not study history are condemned to repeat it.”  And the rest of us are condemned to repeat George Santayana.

Will the Coronavirus Recession of 2020 be V-shaped?  Or U-shaped?  If we fail to heed the lessons of history it is likely to be W-shaped, with incipient recovery followed by successive relapses into sickness and recession.

As has been widely noted, we would have been better prepared to cope with the Covid-19 pandemic in the first place if everyone had paid more attention to the past history of epidemics. Be that as it may, the world is now deep into the pandemic and its economic consequences, the most severe such events since the interwar period, 1918-1939.  As decision-makers in every country contemplate their next steps, they would do well to ponder the precedents of that interwar period.




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How to Avoid a W-shaped Global Coronavirus Recession

“Those who cannot remember the past are condemned to repeat it,” George Santayana famously quipped in 1905. It is a phrase that has been repeated for over a century, but rarely heeded. As Covid-19 decimates the global economy, our understanding of history could be the difference between a V- or U-shaped recession and a W-shaped one, in which incipient recovery is followed by successive relapses.

As recently as March, V-shaped recoveries in individual economies seemed plausible. Once infections and deaths had peaked and begun to decline, the logic went, people would eagerly return to work. The economic activity might even get an extra boost, as consumers released pent-up demand.




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The United States Forgot Its Strategy for Winning Cold Wars

Stephen Walt writes that arguments against U.S. offshore balancing misunderstand history. The strategy that worked against the Soviet Union can work against China.




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Restructuring Argentina’s Private Debt is Essential

Argentina's creditors are being asked to accept a proposal that would reduce their revenue stream but make it sustainable. A responsible resolution will set a positive precedent, not only for Argentina, but for the international financial system as a whole.




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Vettel rues 'messy' qualifying

Sebastian Vettel was left ruing a missed opportunity in Singapore after failing to secure pole position for Sunday's night race




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Alonso victory spices up title race

Fernando Alonso completed an impressive start-to-finish victory at the Singapore Grand Prix




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Button pins title hopes on Suzuka upgrade

Jenson Button is pinning his championship hopes on an upgrade at the Japanese Grand Prix after he finished fourth in Singapore and fell further behind Mark Webber in the standings




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Rosberg challenges Ferrari: 'Bring it on'

Nico Rosberg has challenged Ferrari to "bring it on" after Sebastian Vettel's victory in Malaysia




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Vettel's victory a 'wake-up call' for Mercedes

Mercedes boss Toto Wolff says Sebastian Vettel's win for Ferrari in Malaysia has set alarm bells ringing for the reigning world champion




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Ecclestone keen on all-female world championship

Bernie Ecclestone has suggested the creation of an all-female world championship to run alongside Formula One to encourage more women to enter the sport




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Hamilton '99.6%' done on new Mercedes £27m deal

Lewis Hamilton is closing on a new Mercedes deal reportedly worth £27 million a year and he expects it to be closed this week




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Ferrari still has work to do to catch Mercedes - Kimi

Kimi Raikkonen says Ferrari still has work to do to be consistently competitive with Mercedes but is confident it has taken a big chunk out of Mercedes lead following Sebastian Vettel's victory in Malaysia




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Chinese Grand Prix - Free Practice One




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Chinese Grand Prix - Free Practice Two




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Why Matter Matters: How Technology Characteristics Shape the Strategic Framing of Technologies

The authors investigate how the executives of the two largest research institutes for photovoltaic technologies — the National Renewable Energy Laboratory (NREL) in Golden, USA and the Fraunhofer Institute for Solar Energy Systems (Fraunhofer ISE) in Freiburg, Germany — have made use of public framing to secure funding and shape the technological development of solar photovoltaic (PV) technologies. The article shows that the executives used four framing dimensions (potential, prospect, performance, and progress) and three framing tactics (conclusion, conditioning, and concession), and that the choice of dimensions and tactics is tightly coupled to the characteristics of the specific technologies pursued by the research institutes.




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How Clean is the U.S. Steel Industry? An International Benchmarking of Energy and CO2 Intensities

In this report, the authors conduct a benchmarking analysis for energy and CO2 emissions intensity of the steel industry among the largest steel-producing countries.




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Study Group on Energy Innovation and the Transition to a Low-Carbon Economy: Advising Fortune 500 Companies

This study group will explore the role of the private sector in evolving energy systems, and how corporations might change in a climate constrained world. 




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The Value of Carbon Capture, Utilization, and Sequestration

Growing concern around climate change has ignited recent interest in carbon capture, utilization, and storage (CCUS) technologies and generated a series of studies on its global market potential.




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Geopolitical and Market Implications of Renewable Hydrogen: New Dependencies in a Low-Carbon Energy World

To accelerate the global transition to a low-carbon economy, all energy systems and sectors must be actively decarbonized. While hydrogen has been a staple in the energy and chemical industries for decades, renewable hydrogen is drawing increased attention today as a versatile and sustainable energy carrier with the potential to play an important piece in the carbon-free energy puzzle. Countries around the world are piloting new projects and policies, yet adopting hydrogen at scale will require innovating along the value chains; scaling technologies while significantly reducing costs; deploying enabling infrastructure; and defining appropriate national and international policies and market structures.

What are the general principles of how renewable hydrogen may reshape the structure of global energy markets? What are the likely geopolitical consequences such changes would cause? A deeper understanding of these nascent dynamics will allow policy makers and corporate investors to better navigate the challenges and maximize the opportunities that decarbonization will bring, without falling into the inefficient behaviors of the past.




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Green Ambitions, Brown Realities: Making Sense of Renewable Investment Strategies in the Gulf

Gulf countries have hailed their investments in renewable energy, but some basic questions remain about the extent to which it makes sense for GCC states to invest aggressively in renewables. The sheer magnitude of such investments will require these countries to mobilize significant public resources.  Therefore, such an assessment requires these countries to focus on national interests, not just a desire to be perceived as constructive participants in the global transition away from carbon energy. 

This report starts by identifying four common strategic justifications for investing in renewable energy in GCC countries. Each of these rationales highlights a different aspect of renewable energy investments. In addition, each rationale is based on different assumptions about the underlying drivers of such investments, and each rationale is based on different assumptions about the future of energy. 
 




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Illuminating Homes with LEDs in India: Rapid Market Creation Towards Low-carbon Technology Transition in a Developing Country

This paper examines a recent, rapid, and ongoing transition of India's lighting market to light emitting diode (LED) technology, from a negligible market share to LEDs becoming the dominant lighting products within five years, despite the country's otherwise limited visibility in the global solid-state lighting industry.




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Urban Waste to Energy Recovery Assessment Simulations for Developing Countries

In this paper, a quantitative Waste to Energy Recovery Assessment (WERA) framework is used to stochastically analyze the feasibility of waste-to-energy systems in selected cities in Asia.




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Harvard Business School Professor Rebecca Henderson Outlines Ways Organizations are Changing in Response to the Coronavirus Pandemic and Climate Change in New Edition of "Environmental Insights"

Rebecca Henderson, the John and Natty McArthur University Professor at Harvard University, shared her perspectives on how large organizations are changing in response to the coronavirus pandemic and climate change in the newest episode of "Environmental Insights: Discussions on Policy and Practice from the Harvard Environmental Economics Program," a podcast produced by the Harvard Environmental Economics Program. Listen to the interview here. Listen to the interview here.




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Organizational Responses to COVID-19 and Climate Change: A Conversation with Rebecca Henderson

Rebecca Henderson, the John and Natty McArthur University Professor at Harvard University, shared her perspectives on how large organizations are changing in response to the coronavirus pandemic and climate change in the newest episode of “Environmental Insights: Discussions on Policy and Practice from the Harvard Environmental Economics Program.”




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Oil's Collapse Is a Geopolitical Reset In Disguise

The world is on the cusp of a geopolitical reset. The global pandemic could well undermine international institutions, reinforce nationalism and spur de-globalization. But far-sighted leadership could also rekindle cooperation, glimmers of which appeared in the G-20’s offer of debt relief for some of the world’s poorest countries, a joint plea from more than 200 former national leaders for a more coordinated pandemic response and an unprecedented multinational pact to arrest the crash in oil markets.  




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Low Prices, Full Storage Tanks: What's Next for the Oil Industry

When the economy slows, so does the demand for oil. Prices have plummeted and storage tanks are filled to capacity. We look at the future of the oil industry.




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The Dire Consequences of Trump's Suleimani Decision

Americans would be wise to brace for war with Iran, writes Susan Rice.

"Full-scale conflict is not a certainty, but the probability is higher than at any point in decades. Despite President Trump’s oft-professed desire to avoid war with Iran and withdraw from military entanglements in the Middle East, his decision to order the killing of Maj. Gen. Qassim Suleimani, Iran’s second most important official, as well as Iraqi leaders of an Iranian-backed militia, now locks our two countries in a dangerous escalatory cycle that will likely lead to wider warfare."




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2020–2021 International Security Program Research Fellowships: Apply Now

The International Security Program (ISP) is still accepting applications for 2020–2021.  ISP is a multidisciplinary research group that develops and trains new talent in security studies by hosting pre- and postdoctoral research fellows. 




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The battle of 'resistance' vs 'revolution' in the Middle East

The events surrounding the US assassination of Iranian Quds Force leader Major General Qassem Soleimani brought to the surface the two main ideological forces that now battle each other across the Middle East - the anti-imperial "resistance" of Iran and its Arab allies, and the freedom "revolution" of domestic protesters in the same lands. 




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What Makes for a Moral Foreign Policy?

Joseph Nye's new book rates the efforts of presidents from FDR to Trump.




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Rami Khouri's interview on Aljazeera TV discussing the appointment of the new Lebanese government.

Rami Khouri's interview on Aljazeera TV discussing the appointment of the new Lebanese government amidst continuing protests and clashes with police.




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Lebanon has formed a controversial new government in a polarised, charged atmosphere, and protesters are not going to be easily pacified by its promises, explains Rami Khoury.

The fourth consecutive month of Lebanon's unprecedented political and economic crisis kicked off this week with three dramatic developments that will interplay in the coming months to define the country's direction for years to come: Escalating protests on the streets, heightened security measures by an increasingly militarising state, and now, a new cabinet of controversial so-called "independent technocrats" led by Prime Minister-designate Hassan Diab.

Seeking to increase pressure on the political elite to act responsibly amid inaction vis-a-vis the slow collapse of the economy, the protesters had launched the fourth month of their protest movement, which had begun on 17 October last year, with a 'Week of Anger', stepping up their tactics and targeting banks and government institutions.




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Armed Rebel Groups Lobby in D.C., Just Like Governments. How Does That Influence U.S. Policy?

Armed rebel groups push for funding and recognition, and often get it.




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H-Diplo Review Essay 192 on Lawson. Anatomies of Revolution

Emily Whalen reviews Anatomies of Revolution by George Lawson (Cambridge: Cambridge University Press, 2019).




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How Do Past Presidents Rank in Foreign Policy?

How do presidents incorporate morality into decisions involving the national interest? Moral considerations explain why Truman, who authorized the use of nuclear weapons in Japan during World War II, later refused General MacArthur's request to use them in China during the Korean War. What is contextual intelligence, and how does it explain why Bush 41 is ranked first in foreign policy, but Bush 43 is found wanting? Is it possible for a president to lie in the service of the public interest? In this episode, Professor Joseph S. Nye considers these questions as he explores the role of morality in presidential decision-making from FDR to Trump.




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Q&A with Amy Austin Holmes

Amy Austin Holmes is the Kuwait Foundation Visiting Scholar with the Belfer Center’s Middle East Initiative. An Associate Professor of Sociology at the American University in Cairo, she has lived and taught in the Middle East since 2008 and is an expert on minority groups such as Kurds, Syriac-Assyrian Christians, and Nubians. She is the author of the 2019 book Coups and Revolutions: Mass Mobilization, the Egyptian Military, and the United States from Mubarak to Sisi.

In the Q&A section of this newsletter, we asked Amy Austin Holmes about her work.




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What Allies Want: Reconsidering Loyalty, Reliability, and Alliance Interdependence

Is indiscriminate loyalty what allies want? The First Taiwan Strait Crisis (1954–55) case suggests that allies do not desire U.S. loyalty in all situations. Instead, they want the United States to be a reliable ally, posing no risk of abandonment or entrapment.




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Why is the United States So Bad at Foreign Policy?

Stephen Walt writes that the United States' unusual historical experience, geographic isolation, large domestic market, and general ignorance have weakened its ability to make viable foreign-policy strategies.




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What Makes for a Moral Foreign Policy?

Joseph Nye's new book rates the efforts of presidents from FDR to Trump.




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The Need for Creative and Effective Nuclear Security Vulnerability Assessment and Testing

Realistic, creative vulnerability assessment and testing are critical to finding and fixing nuclear security weaknesses and avoiding over-confidence. Both vulnerability assessment and realistic testing are needed to ensure that nuclear security systems are providing the level of protection required. Systems must be challenged by experts thinking like adversaries, trying to find ways to overcome them. Effective vulnerability assessment and realistic testing are more difficult in the case of insider threats, and special attention is needed. Organizations need to find ways to give people the mission and the incentives to find nuclear security weaknesses and suggest ways they might be fixed. With the right approaches and incentives in place, effective vulnerability assessment and testing can be a key part of achieving and sustaining high levels of nuclear security.




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Assessing Progress on Nuclear Security Action Plans

Participants at the final Nuclear Security Summit in 2016 agreed on “action plans” for initiatives they would support by five international organizations and groups—the International Atomic Energy Agency, the Global Initiative to Combat Nuclear Terrorism, INTERPOL, the United Nations, and the Global Partnership Against the Spread of Weapons and Materials of Destruction. These institutions were supposed to play key roles in bolstering ongoing nuclear security cooperation after the summit process ended. The action plans were modest documents, largely endorsing activities already underway, and there have been mixed results in implementing them. To date, these organizations have not filled any substantial part of the role once played by the nuclear security summits.




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How Do Past Presidents Rank in Foreign Policy?

How do presidents incorporate morality into decisions involving the national interest? Moral considerations explain why Truman, who authorized the use of nuclear weapons in Japan during World War II, later refused General MacArthur's request to use them in China during the Korean War. What is contextual intelligence, and how does it explain why Bush 41 is ranked first in foreign policy, but Bush 43 is found wanting? Is it possible for a president to lie in the service of the public interest? In this episode, Professor Joseph S. Nye considers these questions as he explores the role of morality in presidential decision-making from FDR to Trump.




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Budapest Memorandum at 25: Between Past and Future

On December 5, 1994, leaders of the United States, the United Kingdom, and the Russian Federation met in Budapest, Hungary, to pledge security assurances to Ukraine in connection with its accession to the Treaty on the Nonproliferation of Nuclear Weapons (NPT) as a non-nuclear-weapons state. The signature of the so-called Budapest Memorandum concluded arduous negotiations that resulted in Ukraine’s agreement to relinquish the world’s third-largest nuclear arsenal, which the country inherited from the collapsed Soviet Union, and transfer all nuclear warheads to Russia for dismantlement. The signatories of the memorandum pledged to respect Ukraine’s territorial integrity and inviolability of its borders, and to refrain from the use or threat of military force. Russia breached these commitments with its annexation of Crimea in 2014 and aggression in eastern Ukraine, bringing the meaning and value of security assurance pledged in the Memorandum under renewed scrutiny.

On the occasion of the 25th anniversary of the memorandum’s signature, the Project on Managing the Atom at the Belfer Center for Science & International Affairs at the Harvard Kennedy School, with the support of the Center for U.S.-Ukrainian Relations and the Harvard Ukrainian Research Institute, hosted a conference to revisit the history of the Budapest Memorandum, consider the repercussions of its violation for international security and the broader nonproliferation regime, and draw lessons for the future. The conference brought together academics, practitioners, and experts who have contributed to developing U.S. policy toward post-Soviet nuclear disarmament, participated in the negotiations of the Budapest Memorandum, and dealt with the repercussions of its breach in 2014. The conference highlighted five key lessons learned from the experience of Ukraine’s disarmament, highlighted at the conference.